Question
The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages: Tiger (50%)
The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages:
| Tiger (50%) | $ | 85,000 |
| Phil (30%) | 55,000 | |
| Ernie (20%) | 70,000 | |
Each of the following questions should be viewed independently.
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If Sergio invests $90,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.
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If Sergio invests $64,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.
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If Sergio invests $72,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used.
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Consolidated Financial Reporting
Authors: Paul Taylor
1st Edition
1853962503, 9781853962509
